Tag Archives: DoD

DoD Retreats on Evaluation of Price Reasonableness

Last week, the Department of Defense (“DoD”) quietly withdrew its ill-received proposed rule on the evaluation of price reasonableness in commercial items acquisitions.  Issued on August 3, 2015, the Proposed Rule purported to provide guidance for evaluating the reasonableness of prices using data other than certified cost or pricing data.  As we previously reported, it … Continue Reading

Defense IG’s Criticism of DCMA Is Cold Comfort for Government Contractors

The Inspector General (“IG”) of the Department of Defense issued a report on October 1, 2015, sharply criticizing the performance of Defense Contract Management Agency (“DCMA”) contracting officers.  In a sample of 21 business system deficiency reports (collected from the 164 reports filed between July 2012 and June 2013) the IG investigation found none that … Continue Reading

A Closer Look At DOD’s Proposed Price Reasonableness Rule

The Department of Defense published a long awaited proposed rule on August 3, 2015, amending the DFARS to provide guidance for evaluating the reasonableness of prices using data other than certified cost or pricing data.  The proposed rule falls short of its goal, instead increasing confusion in the determination of price reasonableness for commercial goods that … Continue Reading

Contracting Officers Must Soon Separately Justify Awards to Offerors Proposing High-Percentage or “Pass-Through” Subcontracting

Over the past decade, Congress has focused on eliminating excessive “pass-through” charges—charges defined as overhead costs or profits passed to the Government by contractors adding negligible value over work done by lower-tier contractors.  The efforts began with the Post-Katrina Emergency Management Reform Act of 2006, which introduced limitations on tiered subcontracts after allegations that the … Continue Reading

Potential Relief for Contractors Subject to Rapid Reporting Requirements

During markup of the 2016 National Defense Authorization Act (“NDAA FY 2016”) on April 27, House Armed Services Committee Chairman Mac Thornberry (R-TX) proposed an amendment that would provide liability protection to certain Department of Defense (“DoD”) contractors for properly reporting cyber incidents on their networks and information systems. This amendment relates back to two … Continue Reading

SEC and State OIG Allege that Contractors’ Policies, Procedures, and Agreements Suppress Whistleblowing

In a span of two days, two separate agencies took action against contractor policies and agreements that may discourage whistleblowers.  On March 30, 2015, the U.S. Department of State Office of Inspector General (“State OIG”) issued a report contending that certain contractor policies and agreements have a “chilling effect” on whistleblowers.  On April 1, 2015, … Continue Reading

Controversial Cyber Information Sharing Bill May Impact Government Contractors

Following Obama’ s February 13, 2015 Executive Order to promote the sharing of cybersecurity risks and incidents between the federal government and the private sector, Congress has introduced a slew of information-sharing legislation.  Such legislation includes the Cybersecurity Information Sharing Act of 2015 (“CISA”), which was marked up and approved 14-1 by the Senate Intelligence … Continue Reading

DoD Memo Reveals Poor Scorecard for Agency’s Inclusion of the UCTI DFARS Clause in New Contracts

On February 25, 2015, the Office of the Secretary of Defense (AT&L) issued a memorandum containing an agency “Scorecard” for the implementation of the DFARS clause on safeguarding Unclassified Controlled Technical Information (“UCTI”).  The final UCTI rule was published on November 18, 2013 and required the new DFARS clause 252.204-7012−which imposes requirements for (1) safeguarding … Continue Reading

Increasing U.S. Sales of Defense Articles and Services to Jordan

Despite other areas of disagreement involving the defense budget and U.S. military strategy in the Middle East, the Obama Administration and Senate Republicans might be uniting to fast-track the sale of U.S. defense articles and services to U.S. allies fighting against the Islamic State of Iraq and Syria (“ISIS”). Consider three recent developments involving Jordan.… Continue Reading

New SIGAR Audit Report Says . . . Very Little

On January 15, 2015, the Special Inspector General for Afghanistan Reconstruction (“SIGAR”) released a new report, Department of Defense: More Than 75 Percent of All SIGAR Audit and Inspection Report Recommendations Have Been Implemented (“SIGAR Report”).  At 86 pages, the SIGAR Report might be expected to robustly catalogue and analyze how the Department of Defense (“DOD”) … Continue Reading

First Lead IG Designated Under Amended Inspector General Act

As federal spending for Operation Inherent Resolve surpasses the $1 billion mark, the U.S. military campaign against ISIS forces in Iraq and Syria has a new oversight team.  Late last month, the Honorable Jon T. Rymer, Inspector General for the Department of Defense (“DoD”), was designated lead inspector general (“IG”) for this overseas contingency operation.  … Continue Reading

Senator McCain Renews Focus on Ending Cost-Plus Contracts

A longtime and well-known proponent of defense acquisition reform, Senator John McCain assumed the chairmanship of the U.S. Senate Armed Services Committee (“SASC”) on January 6.  Sen. McCain has been particularly outspoken concerning cost overruns on major systems procurement projects.  He has characterized the “cost-plus” contract structure as among the key causes of these overruns, … Continue Reading

President Signs Act Authorizing $5.4 Billion in Emergency Funding to Combat Ebola

Yesterday, President Barack Obama signed into law a $1.1 trillion appropriations act that allocates approximately $5.4 billion in emergency funding to support the U.S. Government’s response to the Ebola outbreak in West Africa.  Although this funding falls short of the Administration’s initial $6.18 billion request—approximately $1.54 billion of which was to be allocated to a … Continue Reading

Federal Information Technology Reform Act Included in the House-Passed NDAA FY 15

A major piece of IT acquisition reform legislation called the Federal Information Technology Acquisition Reform Act (“FITARA”), on which we have previously reported, was included in version of the National Defense Authorization Act for Fiscal Year 2015 (“NDAA FY 15”) passed by the House on December 4, 2014, along with other significant IT reform provisions related to … Continue Reading

DoD to Impose Yet Another Form of Rapid Reporting Requirements

The National Defense Authorization Act for Fiscal Year 2015 (“NDAA FY 15”) was passed by the House of Representatives on December 4, 2014, and is expected to pass in the Senate.  Among NDAA FY 15’s cybersecurity and acquisition provisions are directions for the Secretary of Defense to establish rapid reporting requirements for “operationally critical contractors.” … Continue Reading

Changes Ahead for TRICARE Managed Care Support Program?

In a move that signals the start of the acquisition cycle for the DOD’s largest purchased care contract, the Defense Health Agency (“DHA”) has released a draft RFP for the next generation of TRICARE Managed Care Support (“MCS”) contracts.  The TRICARE program, which provides health care services to nearly 10 million servicemembers and their families across … Continue Reading

Nuclear Regulatory Commission Moving Forward on Data Breach Notification Rules

The Nuclear Regulatory Commission (“NRC”) appears poised to be the next agency to promulgate cybersecurity breach notification requirements.  The NRC has stated that it is moving forward with draft breach notification rules it released in July 2014.  Under the draft rules, anyone licensed by NRC to operate a nuclear power plant would be required to … Continue Reading
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